TATA STEEL .

The world of Tata Steel is one without boundaries – growing,

changing, and challenging. A world that embraces different skills,
continuous innovation, sustainable growth and better quality of life.

FOUNDER :

Founded by Jamsetji Nusserwanji Tata in 1868 and headquartered in India, the

Tata group is a global business conglomerate, operating in over 100 countries
across 6 continents. From an early foray into steel and automobiles to staying
abreast of the latest technologies, the Tata group today has a strong presence
across diverse industries, such as agrochemicals, automotive, chemicals,
construction, finance, consumer products, and hospitality.

COMPANY PROFILE :

Tata Steel was established in India as Asia’s first integrated private steel
company in 1907. With this, we also developed India’s first industrial city at
Jamshedpur. Today, we are among the leading global steel companies. Our
annual crude steel capacity across Indian operations is nearly 20 MnTPA and
we registered a turnover of INR 91,037 crore in FY21. We also set up our
second greenfield steel plant of 3 MnTPA in the eastern state of Odisha in 2016;
the expansion to 8 MnTPA in currently underway. We possess and operate
captive mines that help us maintain cost- competitiveness and production
efficiencies through an uninterrupted supply of raw material. This is how we
ensure that we remain the lowest cost producer of steel in Asia.

The Indian product portfolio is divided into four segments – Automotive and
Special Products; Industrial Products, Projects and Exports; Branded Products
and Retail; and Services and Solutions. The Company supplies hot-rolled, cold-
rolled, galvanised, branded solution offerings and more.

VISION

We aspire to be the global steel industry benchmark for Value Creation and
Corporate Citizenship.

MISSION

Consistent with the vision and values of the founder Jamsetji Tata, Tata Steel
strives to strengthen India’s industrial base through effective utilisation of staff
and materials. The means envisaged to achieve this are cutting-edge technology
and high productivity, consistent with modern management practices.

Tata Steel recognises that while honesty and integrity are essential ingredients
of a strong and stable enterprise, profitability provides the main spark for
economic activity.

Overall, the Company seeks to scale the heights of excellence in all it does in an
atmosphere free from fear, and thereby reaffirms its faith in democratic values.

THE CORE VALUES THAT DEFINE US

INTEGRITY
 We will be fair , honest , transparent , and ethical in our conduct; every
thing every we do must stand the test of public scrutiny

EXELLENCE

We will be passionate about achieving the highest standards of quality ,

always promoting meritocracy.

UNITY

We will invest in our people and partners, enable continuous learning, and
build caring and collaborative relationships based on trust and mutual respect.

RESPONSIBILITY

We will integrate environment and social principles in our business,

ensuring that what comes from the people goes back to the people many times
over.

PIONEERING

We will be bold and agile , courageously taking on challenges, using deep

customer insight to develop innovative solutions.

Tata Iron and Steel Plant

TISCO is one of the largest manufacturing plants in Asia. It is situated at

Jamshedpur. It is the oldest steel plant in the country. It was established by
Jamshedji Tata in 1907 an started production in 1911. The following factors
were responsible for the plant being located at Jamshedpur.

i) Location ii) Availability of raw materials iii) Power supply iv) Water supply
v) Labour force vi) Market vii) Transport facilities.

Our manufacturing process

The following key activities summarised here constitute our manufacturing process:
 1. RAW MATERIALS MINING AND PROCESSING

We are India’s most integrated steel company with captive mines of iron ore
and collieries located around our manufacturing facilities in Jamshedpur and
Kalinganagar. We follow the highest standards of environmental management
in our mining locations and use advanced technologies for our mining
operations.

2. INBOUND LOGISTICS

We are strategically located for our inbound supplies and our imported raw
materials sourced from around the world are routed through three major ports:
Dhamra, Paradip and Haldia (approx. 350 km, 400 km and 250 km from
Jamshedpur, respectively).

With a focus on efficient logistics, we collaborate with the Indian Railways for
dedicated movement of raw materials from mines and ports to our
manufacturing locations. Inbound logistics ensures uninterrupted supply of
nearly 40 MnTPA of raw materials from ports and captive mines through
railway wagons, ensuring quality and optimal cost. To transport raw materials
inside the Works, a network of conveyor belts is used and solid waste is
transported by road.

3. IRON AND STEEL MAKING

We produce steel through the Blast furnace route. We convert the raw materials
to hot metal and crude steel through various supporting processes including
coke making, sinter making, and pelletisation. Our processes, are designed to
deliver high productivity with the available resources while managing slag rate
and steelmaking requirements.

Technologies deployed

Stamp charging battery, CDQ, Open bed sintering, Fines utilisation as pellets,
Bell-less top charge high-capacity furnaces, Basic Oxygen Furnace for
steelmaking, Online granulation of Blast Furnace Slag, De-sulphurisation,
Secondary steelmaking

4. OUTBOUND LOGISTICS

Our outbound logistics, consisting of a network of warehouses and Steel

Processing Centres (SPCs), ensure timely delivery and transportation of finished
products to meet on-time delivery expectations of customers through a network
of 6 hubs and 18 stockyards at strategic locations across India. This ensures
delivery cycles as low as 48 hours from the stockyards. Output volumes
comprising 34 product types from 49 production units move primarily through
Indian Railways and trailers, covering distances from about 15 km to over 2,300
km.
 5. ROLLING AND PROCESSING

(FLAT AND LONG PRODUCTS AND OTHER VALUE-ADDED

PRODUCTS)

Our rolling mills help us manufacture a diverse product mix with customised
shapes, sizes, and various chemical and technical properties. Aligned with
customer specifications and requirements, our products undergo stringent
quality checking and assurance processes. We produce a range of value-added
products for the retail markets and provide customised solutions to several of
our industrial buyers.

PROBLEMS FACED BY TATA STEEL WHILE PRODUTION :

Financial Risks

Rising inflation and subsequent increase in cost of financing could adversely

impact capex plans. We are also exposed to currency volatility. Further,
development in climate change regulations and disclosure standards could reduce
access to capital and increase the cost of funding.

Mitigation measures :

 Strong cash flow generation

 Aggressive balance sheet deleveraging
 Robust capital allocation strategy
 Strong hedging policy
 Consistent reduction in our carbon footprint

Regulatory Risks

Evolving regulatory framework may have material impact on operations. Deviation

in compliance and adherence may also adversely impact reputation.
Mitigation measures

 Constant monitoring of the regulatory landscape

 A policy of zero tolerance to non-compliance

 Robust compliance management systems to ensure awareness and

compliance

 Policy advocacy undertaken to advocate best available practices, simplify

guidelines to reduce cost of doing business and improve ease of doing
business

 Technology is being utilised to track compliance, timelines with suitable

escalations, action plans and reviews

Macroeconomic & Market Risks

Steel demand is affected by high inflation. Re-imposition of mobility restrictions

amidst the spread of new variants may also affect demand and supply chains. Fast-
paced technological changes and shifting customer preferences may necessitate
change in strategy.

Mitigation measures

 Undertook numerous steps to deal with the challenges in the operating

environment arising out of COVID-19

 Invested in building a strong marketing franchise with well-regarded brands

and a large network of distributors and dealers across the country
Operational Risks

Disruption to Tata Steel’s manufacturing processes caused due to various factors

such as equipment failures, natural disasters, epidemics or pandemics or extreme
weather events, etc. could adversely affect operations and customer service levels.

Mitigation measures

 Adopting advanced maintenance practices to improve plant availability and

reliability

 The Maintenance Technology Roadmap (MTR) is well in progress for

transitioning to predictive maintenance-based practices

 Digital initiatives undertaken to optimise inventory and improve process

efficiencies

 Disaster plan and related SOPs to proactively respond to natural disasters,

epidemics or extreme weather events

 Institutionalised business continuity management

Safety Risks

Inconsistent adherence to process and workforce safety requirements, safety laws

and regulation may have adverse impact on business continuity and operation.
COVID-19 contagion poses risk to workforce health & safety.

Mitigation measures

 Committed to zero harm

 Experiential learning and focus on dissemination of safety standards among

workforce
  Campaigns on various safety topics

 Launched POD system – a multi-layer protection to break the transmission

circuit of COVID-19 virus at the workplace

Community Risks

An erosion of trust with communities will slow down societal impact and lead to
consequent loss of reputation or business continuity

Mitigation measures

 Anchor one of the deepest and most diverse societal development efforts
based on a combination of programmes and platforms reaching more than
2.8 million lives

 Created a portfolio of initiatives aimed at addressing societal challenges

Commodity Risks

Volatility in raw material prices significantly impacts the input costs. Geopolitical
events, pandemic or changing weather could affect commodity prices.

Mitigation measures

 Sound hedging policies

 Captive/domestic raw materials provide guard against volatility and supply

chain disruption

 Assessment of the risk of single geography/proprietary sourcing and

relevant mitigations are undertaken
Supply Chain Risks

Weather disruptions or geopolitical instability puts a threat on material availability.

Political instability coupled with intermittent waves of pandemic is not only a
threat to raw material supplies but also has an adverse impact on ship and container
freights availability.

Mitigation measures

 Formed ‘One Supply Chain’ division

 Use of digitalisation and optimisation

 Adoption of hedging strategies

 Invested in private freight train schemes

 Adopting a three-pronged strategy of Service Reliability, Infrastructure

Resilience and Cost Optimisation for a future-ready Green Supply Chain

Information Security Risks

Transition to remote working models and accelerated adoption of digital

technologies have increased vulnerability to cyber-attacks. Non-compliance to IT
legislations and regulations may lead to business disruption and imposition of
penalties.

Mitigation measures

 Several investments made in digital transformation

 Multi-layered network topology

 Adoption of next-generation Security Operations Centre (SOC) controls and

technologies to safeguard IT data and applications

 Engaged with best-in-class service providers for SOC services

 End of Life (EOL) systems are being replaced

 Policies and procedures are put in place to ensure data privacy